Apple reportedly planning paid news subscription service

Apple bought Texture last month.                  Texture

Apple bought Texture last month. Texture

According to those familiar with Apple's plans, a new and improved Apple News app will be offered and a percentage of the subscription revenue will be given to magazine publishers who are part of the service.

Last month, Apple announced it acquired the digital magazine distributor Texture as an entry to the journalism world.

Bloomberg's report claims Apple has started moving Texture employees across to Apple, laying off approximately 20 staff members in the process. Before News, Apple had had Newsstand, which was essentially a market for purchasing subscriptions to individual magazines and newspapers.

Prior to the acquisition, Texture had been charging $9.99 a month and had featured more than 200 magazines including People, Time, National Geographic, Esquire, GQ, The Atlantic and Rolling Stone.

Apple's services business is orders of magnitude smaller than its hardware business, but the company has had success with its Apple Music service, which now boasts almost 40 million subscribers. This will be a similar service as major companies will be offering content based on subscriptions. Services revenue grew 23% to $30B in FY17, but execs have a goal of $50B by 2021.

Currently, Apple sells subscriptions for iCloud storage and Apple Music.

Apple's music subscription service, Apple Music, has successfully scaled an improved version of the Beats Music service from under 1 million to over 40 million subscribers in a matter of years. Apple News would be just one more source of revenue for the company's fastest growing business segment. The company could also choose to turn its original video content efforts into its own Netflix-like video subscription service.

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